I don’t know if it is me because I have a degree in accounting or am super picky about technology, but I gotta say that the web-based accounting systems on the market today have a ways to go to be great to use. When I was shopping for a new accounting package last fall I went looking at the software that you could install on the Mac and those that were web-based. I looked at the usual suspects, Quickbooks, Peachtree and their online counterparts QuickBooks for the Web and ePeachtree. I also looked at web-based solutions like Outright, Less Accounting and Freshbooks. Since Freshbooks was strictly invoicing software I took that out of the running.
AllBusiness.com describes online accounting systems as “a basic service that generally includes double-entry general ledgers, invoicing, accounts payable, accounts receivable and financial reporting. Some applications also include time sheets and expense reports, as well as payroll, check writing, credit card and inventory features.”
Now I am not here to do a compare and contrast of those products because each small business has their own requirements and things that I call “deal breakers” which is a feature that they must have in the solution they choose. As I went through this selection process many had the basics and a few had some great functions but not all had the right mix that would make it the natural choice. So I thought about it and wanted to share what I thought should be in a web-based accounting system. I came up with nine things and here they are:
1.) Sync with major invoicing and payroll systems – We all need to send invoices and the fact that many of the online accounting systems have invoicing systems that stink on ice is an understatement. I use an invoicing system separately because I can customize it and sync with my web-based project management system.
2.) Automatically have a 2 user package – I have an accountant and the fact that many of the accounting packages have this only available as a premium is a bit of a stupid thing. Give me greater functionality and more reasons to upgrade and I will, not out of reluctance because I need to give access to my accountant.
3.) Real and Useful Mobile application – No I am not talking about a mobile web page version, a real app I can use on an iPhone, Android or Blackberry system. This is not just a browse and tell you stuff app but something that I can actually enter a transaction or track expenses.
4.) Online Sync with my Bank Account – Now I am not an international financier with 1oo’s of off-shore and complex accounts and what I really want is to be able to connect with my bank, download the transactions and then categorize them quickly. A few wanted you to download a QFX file and import it which is a pain and something my bank doesn’t offer anymore. I am not going to switch banks to fit my software, that is usually the other way around.
5.) Work with all the major business models – There was one package I loved but it wasn’t really designed for corporations but rather the product was for sole proprietorships and keeping it simple. I can respect that and the product is new so I hope they plan to increase the functionality for those of us that have LLC and S Corporations and would love to use that system.
6.) Time sheet entry for a bunch of employees – One thing that I didn’t understand is that for some of these web packages I had to pay for a license for access just so a person could do a time sheet entry. This almost seems like the feature that everyone says they have but no one seems to execute well. Here is the functionality – login, see time sheet, enter time matching with projects/tasks/department and click submit. Yeah, that is really all we need to give people access for and if you can give us unlimited or up to 25 or 50 contractors you would have people beating down your door.
7.) If not time entry then API connectivity to my project management system – Ok, so right now my setup is a web-based project management system, web-based invoicing system and installed accounting software. What I really want to do is keep my people submitting their time on the project management system and pull that into an accounting system to do invoicing. If those connections were available, you could have a ton of new customers.
8.) Synchronization with the offline installed software version – I know this might be asking much but it would be fantastic if I could connect to a central stored database that held my accounting system it would allow me to go between installed software and web versions. I know this is a stretch, but I do want it.
9.) Integration with my e-commerce system and merchant account – All of the installed software versions have this in some fashion but this is something that should really be a big focus for the development roadmap. Many people, including me, have small accounting needs but much of our business is driven by online sales. Trying to reconcile that is challenging.
Remember, this is just a wish list
I am sure that over time many of these products will continue to mature and some of these functions will be added and they will improve. My only hope is that a few product managers will read this and become inspired.
What things do you want in a great web-based accounting system?
So was this list good? A good start? What did I miss? What has frustrated you when you have been evaluating these packages? We would love to hear from you so leave a comment.
